Research On Controlling Debt Leverage In New Energy Enterprises

For eight years,global investment in green energy has exceeded 200 billion dollars in total.In 2017,the global renewable energy sector,excluding large hydropower,had invested a total of 279.8 billion US dollars which had increased 15.8%compared with 2016.The development of global new energy industry continues to maintain a rapid growth momentum and has broad prospects.During "Twelfth Five-Year Plan",China will focus on new energy as the main target for the next seven strategic emerging industries,and many enterprises will enter the new energy field.Nowadays,China is so far the world’s largest investor in renewable energy.Last year’s investment was 31%higher than 2016,reaching $126.6 billion.Meanwhile,in 2016,China began to suppress the economic bubble by macro policy,from three aspects of regulating the real estate bubble,tightening liquidity and strengthening financial supervision.The Nineteenth National Congress also made it an important task to guard major risks.Also,a series of deleveraging policies have been issued successively,which also reflects its importance and urgency.The demand for capital expenditure in the new energy industry is large,the investment of capital is large,and the scale of borrowing is relatively higher than that in some traditional industries,so the problem of deleveraging in the new energy industry is imminent.This paper selected 38 domestic new energy enterprises as main sample,and combined empirical analysis and case analysis to start with the financial data and information disclosed in the sample companies’annual reports from 2002 to 2017.Firstly,the descriptive statistical analysis of the sample company’s debt structure is carried out.Then the research hypothesis is put forward,and the correlation between 5 independent variables and the dependent variable’s asset-liability ratio is assumed.Based on the hypothesis,this paper used principal component analysis method to extract 4 principal components which affect asset-liability ratio from 8 financial indicators,named profitability,asset liquidity,equity,and rate of growth.Then,use regression model to analyze the relationship between asset-liability ratio of new energy companies and five factors.Result shows that the asset-liability ratio is negatively correlated with the company’s profitability,asset liquidity and equity,and significantly positively correlated with rate of growth and the proportion of fixed assets.Finally,this paper chooses GCL integration and Sunflower as the targets of case analysis.This paper suggests that the debt reduction of new energy industry enterprises should start from improving the profitability of assets,increasing the current ratio of assets and rate of turnover,increasing the investment in registered capital,and reducing the proportion of investment in fixed assets.